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collections pay off first or credit debt

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Anonymous
Not applicable

collections pay off first or credit debt

Do I pay down my credit vards first or collections?

Message 1 of 8
7 REPLIES 7
RSX
Valued Contributor

Re: collections pay off first or credit debt

welcome

 

post a list of your debts and collections - include the companies they are with - and the amount of the total credit line for each

 

then a plan can be made on what moves will help you the most

Dec 16/2019. EX. 721. EQ. 723. TU 746
Jan 25/2024 EX. 774 EQ. 751 TU 758
Inq. EX 2 EQ 3 TU 6 - - CC 2x24, 0x12
Amex BCP $35k - Apple GS $21k - BMW/Elan $19k - Cap1 QS $16.7k - Chase Amazon $13.6k - Chase Bonvoy Bountiful $10k - Chase United Club Infinite $26k - Citi CustomCash $3k - Citi DC $14.5k - CreditUnion1 $9k - DiscoverIT $31.5k - PayBoo - $15.6k - Penfed Gold - $19.3k - USB AltitudeGO -$19k- USBank Cash+ -$25k - PenFed LOC - $20k - USB LOC - $15k
Message 2 of 8
SoCalGardener
Valued Contributor

Re: collections pay off first or credit debt


@Anonymous wrote:

Do I pay down my credit vards first or collections?


Welcome aboard! Smiley Happy

 

The answer to your question really depends on....well, it just depends. We're going to need a lot more information/details to be able to make meaningful suggestions. As @RSX requested, please post your account information, but also let us know what you're aiming for. What's most important to you right now? What are your short- and long-term credit goals? How much money do you have every month to use for these purposes?

Amazon Prime Store CardAmerican Express Blue Cash Preferred CardAmerican Express Everyday CardBank of America Customized Cash VisaCapitalOne Quicksilver MastercardCapitalOne Quicksilver VisaCapitalOne Walmart Rewards MastercardChevron Texaco CardCiti Double Cash MastercardDiscover More CardJCPenney Gold MastercardOverstock.com CardSportsmans Guide Rewards VisaSynchrony Home Card
Message 3 of 8
Yasselife
Valued Contributor

Re: collections pay off first or credit debt

@Anonymous I suggest you take care of your debt first because your current accounts will keep up with you while helping your profile history and relationship with the bank; having collections damaged that relationship and will stay on your report for 7yrs; you could negotiate a removal with the collectors but takes a lot of work and luck.

   If you'd like to share more info, I could guide you in a more specific way and plan a strategy, but what I said before are the basics to help you think and make your own decision.






Message 4 of 8
FireMedic1
Community Leader
Mega Contributor

Re: collections pay off first or credit debt

Paying off collections does nothing to a score. Paying down credit card debt does raise your score. As others above stated. List them out and the gang will help you mate.


Message 5 of 8
Anonymous
Not applicable

Re: collections pay off first or credit debt

Goal is to bring up FICO 2- will hopefully qualify for mortage around Arpril 2023. These are realtively small balances and I have the opportunity to knock it all out in the next 2-3 months. There is a car note and other loan not listed that are installments that will continue to be paid as scheduled.

 

9 accounts with  Merchant collection agency all from same primary debtor(medical bills) totaling $3,02.41

2 accounts with Champman collection both from same primary debtor(medical bills) totaling $575.00

1 account with fbcs = $583.67

 

Credit card utilization 1st # is limit, 2cd is current balance- higher than usual after a vacation and unexpected brake job on car

Usully around 25%

 

2 Credit One cards -  1000/742, 800/399

1Credit One (authorized user) 600/482

1 Capitol one card- 500/383

3 First Premier Cards (authorized user) 500/341, 800/376, 700/423

Aspire-700/256

Total-300/162

Torrid-250/0

 

 

Message 6 of 8
FireMedic1
Community Leader
Mega Contributor

Re: collections pay off first or credit debt


@Anonymous wrote:

Goal is to bring up FICO 2- will hopefully qualify for mortage around Arpril 2023. These are realtively small balances and I have the opportunity to knock it all out in the next 2-3 months. There is a car note and other loan not listed that are installments that will continue to be paid as scheduled.

 

9 accounts with  Merchant collection agency all from same primary debtor(medical bills) totaling $3,02.41

2 accounts with Champman collection both from same primary debtor(medical bills) totaling $575.00

1 account with fbcs = $583.67

 

Credit card utilization 1st # is limit, 2cd is current balance- higher than usual after a vacation and unexpected brake job on car

Usully around 25%

 

2 Credit One cards -  1000/742, 800/399

1Credit One (authorized user) 600/482

1 Capitol one card- 500/383

3 First Premier Cards (authorized user) 500/341, 800/376, 700/423

Aspire-700/256

Total-300/162

Torrid-250/0

 

 


First thing that stands out. Get off those cards ASAP. The util is way too high and its hurting you. You have enough on your own which you can pay down and be sitting pretty good. More cards doesnt mean higher scores. You can have 5 cards or 25 cards and have the same score. If you can pay off the nameless loan and keep the car loan that will help. As far as the medical collections. This is from our Mod @gdale6 

1. Call the OC and see if insurance can be billed, (or-rebilled), collections ultimately paid by insurance get removed per new rules that came from CRAs settlement with 22 state AGs. If not then
2. see if you qualify for Charity Care, if not then
3. ask that they recall the collection in exchange for full payment
4. Send the reporting CA a PFD offer
5. Google the HIPAA Process and contact its creator for help, this process cannot be discussed in any forum of myFico.


Message 7 of 8
Anonymous
Not applicable

Re: collections pay off first or credit debt

Thank you-

 

All of the Medical are balance owing after ins paid and I have asked them to delete if I pay in full and the answer was no. I also do not qualify for charity care

Message 8 of 8
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